New Delhi, May 15 :     The Escorts group has decided to sell off its entire holding in Escorts Communications Ltd (ECL) to Korean Chaebol LG's communication arm - LG Information and Communication Ltd (LGIC) - over the next three months, ECL chief executive officer Rajan Swaroop said. 'We have decided to exit the venture and just concentrate on our other two telecom businesses - Hughes Escort Communications Ltd (HECL) and Escotel,' Swaroop said here today. Though he refused to divulge financial details of the transaction, Swaroop said with this deal, Escorts would move out of the telecom hardware manufacturing business. LG's investment plans gain significance since Escorts Communications, a 100 per cent subsidiary of the Rs 3,200 crore Escorts group, had approached BIFR following a complete net worth erosion due to accumulated losses. 'Under ECL, Escorts was manufacturing PBX and rural automated exchanges. However, the company had eroded its net worth and came under the purview of the Board for Industrial and Financial Reconstruction (BIFR). But now, with the LG group company having already picked up close to a 49 per cent stake in the venture, the company has changed its product portfolio to include CDMA-based wireless in local loop (WiLL) equipment. Since that is LGIC's proprietary technology, we feel that we would not have much to do there and hence have decided to move out of it,' he added. Esconet, a 100 per cent subsidiary of Escorts, has tied up with Vistaar and i2 Technologies to develop automatrixindia.com, a B2B marketplace for the automotive industry. Esconet also plans to invest about Rs 40 crore in other e-initiatives in healthcare, mobile services and in its internet service provider venture. Escorts will provide an initial equity of Rs 25 crore to its subsidiary. The automatrixindia portal will cater to all trading requirements of original equipment manufacturers, suppliers, dealers, independent installers, logistics providers and banks.